PCAR

PACCAR (PCAR) is back in focus after reporting second quarter 2026 earnings of $1.43 per share, which topped estimates and came in higher than the same period a year earlier. PACCAR shares closed at $125.34, with the stock down 6.37% on a 1 month share price return and 4.34% over the past week. However, the 90 day share price return of 13.56% and 1 year total shareholder return of 28.46% point to momentum that has built over a longer horizon. Compare PACCAR's recent earnings beat and share price swings with a curated 44 high quality undervalued stocks that also combine solid cash generation with balance sheet strength. PACCAR stock has pulled back despite the earnings beat and strong longer term returns. Does that recent weakness leave enough upside in the current valuation to keep the risk reward balance tilted toward buyers? The most followed narrative values PACCAR at $141.03 per share, above the last close at $125.34. That gap is built on specific growth and margin expectations rather than short term price moves. Read the complete narrative. Read the complete narrative. Want to see what underpins that higher valuation for PACCAR? The narrative focuses on revenue compounding, margin uplift, and a richer earnings multiple over time. Result: Fair Value of $141.03 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, PACCAR’s story can change quickly if truck demand weakens for longer than analysts expect or if tariffs and trade policies push costs higher and margins lower. Find out about the key risks to this PACCAR narrative. Does the mix of risks and rewards around PACCAR leave you feeling cautious or optimistic right now? Act while the information is fresh and review the full breakdown of 3 key rewards and 1 important warning sign If PACCAR has sharpened your focus on quality, do not stop here. Use the Simply Wall Street Screener to quickly spot other opportunities that deserve a closer look. Target dependable income by reviewing companies in the 12 dividend fortresses that prioritize consistent cash returns to shareholders. Spot potential value opportunities early by scanning the 19 high quality undiscovered gems that pair solid fundamentals with relatively low market attention. Reduce portfolio volatility by checking out the 74 resilient stocks with low risk scores that show resilient financial profiles and lower risk scores. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include PCAR. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

A month has gone by since the last earnings report for Paccar (PCAR). Shares have lost about 3.5% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Paccar due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for PACCAR Inc. before we dive into how investors and analysts have reacted as of late. PACCAR reported second-quarter 2026 earnings of $1.43 per share, beating the Zacks Consensus Estimate of $1.33 by 7.5%. The bottom line increased 4.4% from $1.37 in the year-ago quarter. Consolidated revenues (including trucks and financial services) were $7.55 billion, up from $7.1 billion in the corresponding quarter of 2025. Truck, Parts and Other revenues of $7 rose 0.5% year over year. Higher truck profitability and record parts revenues supported results, while global truck deliveries declined 1.5% to 38,700 units. Truck revenues were $5.25 billion in the quarter, edging up from $5.24 billion a year earlier. Parts revenues increased 1.5% to a record $1.75 billion, reflecting continued strength in the aftermarket business. Financial Services revenues were $549.7 million compared with $547.7 million in the prior-year quarter. Intersegment eliminations and other were $3 million. Geographically, revenues from the United States and Canada declined 3.3% to $4.59 billion. European revenues advanced 6.9% to $1.79 billion, while revenues from other markets climbed 7.3% to $1.17 billion. Truck pretax profit rose 16.7% year over year to $360.5 million from $308.8 million. North American deliveries fell to 22,000 units from 23,000. Europe improved to 11,200 units from 10,600, while other markets declined to 5,500 units from 5,700. The higher second-quarter build rates were attributable to strong orders and improving freight rates. PACCAR expects constrained freight capacity and an aging fleet to create opportunities for customers to replace trucks with newer, more fuel-efficient models. PACCAR Parts generated pretax income of $417 million compared with $416.5 million a year ago. The modest profit increase came alongside record quarterly revenues and continued investment in distribution and logistics capabilities. The company expects improving North American freight conditions to support truck utilization and parts demand. Its parts network includes 21 distribution centers serving more than 2,000 DAF, Kenworth and Peterbilt locations and over 350 TRP stores. First-half parts revenues increased to $3.46 billion from $3.41 billion. Pretax profit for the six-month period declined to $819.3 million from $843 million. Financial Services pretax income was $124.1 million compared with $123.2 million in the year-ago quarter. Provision for losses on receivables increased to $39.4 million from $29.2 million, partly offsetting steady finance margins and an improving used-truck market. The business ended the quarter with a portfolio of 222,000 trucks and trailers and $22.3 billion in total assets. PacLease’s fleet stood at 37,000 vehicles, and the segment issued $1.38 billion of medium-term notes during the first half. First-half Financial Services pretax income declined to $239.6 million from $244.3 million. Revenues increased to $1.09 billion from $1.08 billion over the same period. Within Truck, Parts and Other, cost of sales and revenues declined to $5.99 billion from $6 billion. Research and development expenses rose to $114.3 million from $112.9 million, while selling, general and administrative expense eased to $138.6 million from $139.2 million. PACCAR generated $700.8 million in operating cash flow during the quarter. For the first half, operating cash flow was $1.67 billion, while capital investments and research and development expenses totaled $274.2 million and $223.4 million, respectively. Cash and marketable securities were $8.67 billion as of June 30, 2026, compared with $9.25 billion at Dec. 31, 2025. The company maintained its 2026 U.S. and Canada Class 8 industry retail sales forecast at 230,000-270,000 trucks. It expects European above 16-tonne registrations of 290,000-330,000 units, up from the previous estimate of 280,000-320,000. The South American above 16-tonne market remains projected at 100,000-110,000 trucks. For 2026, capital expenditures are now expected between $700 million and $750 million, down from the previous estimate of $725-$775 million. Research and development expenses are now projected to be in the band of $450-$480 million compared with the previous estimate of $450-$500 million. PACCAR expects to deliver approximately 42,000 trucks in the third quarter, up from 38,700 units in the second-quarter. It turns out, estimates revision have trended upward during the past month. The consensus estimate has shifted 5.75% due to these changes. At this time, Paccar has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock has a grade of B on the value side, putting it in the second quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Paccar has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report PACCAR Inc. (PCAR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Tuesday, July 28, 2026 at 12:00 p.m. ET Chief Executive Officer - R. Preston Feight President - Kevin D. Baney Senior Vice President and Chief Financial Officer - Brice J. Poplawski Director of Investor Relations - Ken Hastings Operator: Good morning, and welcome to PACCAR's Second Quarter 2026 Earnings Conference Call. Today's call is being recorded. And if anyone has an objection, they should disconnect at this time. I would now like to introduce Mr. Ken Hastings, PACCAR's director of investor relations. Mr. Hastings, please go ahead. Ken Hastings: Good morning, and welcome to PACCAR's second quarter 2026 Earnings Conference Call. All lines will be in-- My name is Ken Hastings, PACCAR's director of investor relations. And joining me this morning are R. Preston Feight, Chief Executive Officer Kevin D. Baney, President, and Brice J. Poplawski, Senior vice president and chief financial officer. Certain information presented today will be forward-looking and involve risk and uncertainties that may affect expected results. For additional information, please see our SEC filings and the Investor Relations page of paccar.com. I would now like to introduce Preston Feight. R. Preston Feight: Thanks, Ken. Good morning, everyone. In the second quarter, PACCAR's outstanding employees did an excellent job of increasing production to provide our customers with the highest quality trucks and transportation solutions in the industry. Their hard work, high performance, and dedication is enabling PACCAR to continue increasing build rates in our factories around the world. PACCAR's second quarter revenues were $7.5 billion and net income was $752 million, an increase of 24% from the first quarter. These results were driven by strong truck division performance. PACCAR Parts performed well and achieved record quarterly revenues of $1.75 billion and quarterly pre-tax income of $417 million. PACCAR Financial also performed well, achieving pre-tax income of $124 million. Now looking at this year's U.S. and Canadian heavy truck market. the U.S. economy is growing, and the truck market is strengthening. As freight rates have increased and regulatory clarity has been provided. First half retail sales were 105,000 trucks. And we expect that the second half could be around 145,000 resulting in a full year market size of around 250,000 units. Europe, the economy is growing modestly, and the truck market is healthy. We project the 2026 European above 16-ton market size to be around 310,000 trucks. DAF's premium trucks are providing customers with the latest technology, and best operating efficiency. This year's South American above 16-ton market where DAF trucks are desired by customers for their durability and advanced technology, is expected to be in the range of 100,000 to 110,000 vehicles. In the second quarter, PACCAR's truck deliveries increased from 33,000 to 38,700. Third quarter deliveries are estimated to grow and be around 42,000 as build rate increases are partially offset by the normal European summer shutdown period. PACCAR's truck parts, other second quarter gross margins increased from 13.1% to 14.4% due to very good overall performance. Third quarter margins are forecast to be a strong 14.5% and then further increase in the fourth quarter. PACCAR's exceptional range of trucks, compelling parts business, industry-leading financial services, and customer-focused product development strategy, position the company well for an excellent second half of 2026 and the future. Kevin will now provide an update on PACCAR Parts, financial services, and other business highlights. Kevin? Kevin D. Baney: Thank you, Preston. PACCAR Parts achieved record second quarter revenues of $1.75 billion and good pre-tax profits of $417 million. Gross margins increased to 29.8%. Increasing truck utilization is beginning to lead to more parts and service activity, and we expect higher parts sales growth in the second half. Revenue from PACCAR Parts fleet services program grew 8% in the second quarter, which is an indicator customers are beginning to increase parts purchases. For the full year, we estimate parts sales growth in the range of 3% to 5%. PACCAR Financial Services pre-tax income was a robust $124 million. Their high performance is a result of steady finance margins and strengthening used truck markets. Earlier this month, the EPA clarified a key NOx-related emissions regulation. The clarification extends the timeline to introduce 35-milligram NOx engines. Next year, customers will be able to buy the current generation of engines with an associated nonconformance penalty. This will be beneficial for customers as it will ensure that new technology is fully validated before being purchased by customers. It is also likely to have a positive impact on the size and strength of next year's truck market. This year, PACCAR is planning capital investments in the range of $700 million to $750 million, and R&D expenditures in the range of $450 million to $480 million. PACCAR is investing in customer-focused technology and innovation projects including advanced flexible manufacturing, that enhances efficient local-for-local production, the development of next generation clean diesel engines, industry-leading hybrid and electric powertrains, integrated vehicle and connected vehicle services. We are looking forward to the success that our customers, dealers, and PACCAR will experience in the coming quarters and years. We are now pleased to answer your questions. Operator: Thank you. We will now begin the question-and-answer session. If you would like to ask a question, please press one on your telephone keypad. To withdraw your question, press one again. We ask that you pick up your handset when asking a question and if you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Stephen Volkmann from Jefferies. Steven, your line is open. Please go ahead. Stephen Volkmann: Thank you. Good morning, everyone. Hi, Steven. Good morning. I am wondering, if we can dive in on the gross I think this quarter came in a bit stronger than you had expected. What are the moving parts that would explain that? R. Preston Feight: Sure. There are a couple things. Thanks for the question. Probably one of the things is volume of trucks was higher. And then most significantly, I think our local production is benefiting PACCAR. I also think that the team did a great job in cost controls on price versus cost was favorable for us. Even more than we thought it would be, so that was also a positive. Those are the biggest majorities of what influenced it. And as I said, local-for-local production provides some tariff benefits to us. Stephen Volkmann: Okay. Great. And what are you seeing in the market relative to price? Because you have a little bit more, I guess, local-for-local than some of your competitors. Are you seeing overall pricing kind of coming up in the market, gives you some opportunity? R. Preston Feight: Yeah. I think what is happening in the general market is our customers are starting to experience better operating conditions for themselves. Spot rates are up 20%. Contract rates were up 6.5%, so we are seeing favorability for how they are operating their businesses. I think the driver pool has become a little bit more constrained, which is helping them realize operating benefits. And I think we all share in that together. So we have seen some favorability in terms of how we are able to price trucks as we look forward. Great. Thank you, guys. You bet. Have a great day, Steven. Operator: Next question comes from the line of Jerry David Revich from Wells Fargo. Please go ahead. Jerry Revich: Yes. Hi. Good morning. Good afternoon, everybody. Hi. I thought the profit per truck performance was especially strong in the quarter. I am wondering, was there any EPA refund benefit or anything along those lines that contributed to the really strong cost improvement? Brice J. Poplawski: You know, I think if you look at that performance, it was largely driven from a net price-cost benefit. And the biggest part of that was really the team's operating effectiveness and good warranty performance by the team. Efficiencies to the local-for-local, but we did have a net tariff benefit We had some tariffs. We have to pay, of course, with the raw material stuff, and then we had some offset tariffs But the net was the bigger part of it was really operating strength. Jerry Revich: Thank you for the color. Is it possible just to quantify the refund that you saw in the quarter just put a finer point on the run rate profits per truck? No. Brice J. Poplawski: We did not put that out, and we think that it will be remain strong. So we think that the tariff position we had in the second quarter will look similar to the third quarter. that is really great to hear. Jerry Revich: And then what we had been hearing until the EPA's new ruling was that you folks the fourth quarter deliveries were pulling back discounts and so the price realization was set to improve by over $5,000 in the fourth quarter versus the third quarter. Can you update us that still happening considering the more phased approach to the EPA 2027 rollout? R. Preston Feight: I think the EPA has done a very nice job in paying attention to what the industry's needs are. I appreciate the work the administration has done in helping make sure we put valid fully validated products out into the marketplace. So it is been nice to work with the ATA and the customers and the administration to put a government business relationship in place that is working well. I think what they did is they took not all of the prebuy, but they kind of smoothed it And I think it creates a stronger position for 2027 to be a good market for the industry. And so I think that is kind of how we experience in that. And if it is a good market, for our customers, then it tends to be a good market for us as well. Yep. Thank you. You bet. Have a great day. Operator: Your next question comes from the line of Tami Zakaria from JPMorgan. Please go ahead. Tami Zakaria: Hey. Good morning. Congrats on the excellent results. Two questions. The first one is on the gross margin guide for the third quarter. It seems like you are expecting somewhat sequentially flattish gross margin. Despite deliveries being higher and North America probably being higher mix, given the shutdowns in Europe? So what underpins that margin guide? Why would not margin be better sequentially? Is there any cost headwind you are expecting in this third quarter that you did not have in the second quarter? R. Preston Feight: You know, great question, Tami. Thanks for asking. There are a couple of things that are a factor. One, you are fully aware of, right, which is that as truck increases, it has a ratio mix to parts. That increase has an impact, so that is why it is around 14%. And there also happens to be in the third quarter, probably the mix of our actual trucks we are building is shifting a little bit. Those two things together. So maybe a little less vocational, a little bit more fleet trucks that we are building. So put, we stay with the strong margin. But the nice thing is with the higher build, we see profit increasing. In the quarter and continuing to strengthen through the year. Tami Zakaria: Got it. That is helpful. And then my second question is on the NOx compliant engines. If I remember correctly, you expected that to be call it $8,000 to $10,000 more expensive than the noncompliant one, but with the NCPs that have been announced, it seems like the fine could be lower than the cost of a compliant engine. Just wanted to know if that is what if that is how you interpreted it. And if so, how could that impact your customer behavior next year when the EPA and NOx regulation goes into effect? R. Preston Feight: Hey, Tami. Thanks for the second question. Good question. I think a lot of information came out just as recently as July 9 on that when the EPA made the announcement. It is still preliminary. It is a notice of proposed rulemaking, so there is still a comment period that we are in. So things could even change from here. We will have to see what that looks like. We probably will not get a final answer till much later in the year. But the way it is currently proposed is we would expect to see NCPs running at something like the $6,000 to $7,000 range per truck. And as you noted, the cost of fully compliant 35-milligram engines would likely be higher than that. But I think a lot of what went into the discussion was the desire to make sure that the engines from all the manufacturers and engine companies were fully validated and the customers had enough time with them that was a big portion of what happened here. So I think the result of that is, as shared earlier, means that the end of the year will improve and then I think it bodes well for a good 2027 operating condition for the customers and for us. Understood. Thank you. Operator: Great. Your next question comes from the line of Rob Wertheimer from Melius Research. Please go ahead. Rob Wertheimer: Thank you. Preston, you just touched on this. I think maybe Kevin did earlier, but, you know, the EPA shift or closed rule may benefit 2027 a bit. And my question is a bit of a soft one, but when you talk to customers now, are people prebuying, or do they just need trucks? You know, there is there are a couple things that maybe tightened up fleet dynamics. And so I am curious about maybe it is a soft question, but like what people are buying for. And then in the 2027, those comments around a continued prebuy or more just that people have confidence in the engine and are not shying away from it. Thank you. R. Preston Feight: Yeah, sure. Good question. Good to think through that a little bit. I think part of what is happening is they have been in a tough operating condition. Our customers, many of them, been in a tough operating condition for a few years now. That meant they have been careful with capital. They have probably kept trucks longer than they would have wanted to, and you can see that especially as a pronounced first half of this year. Where it really showed up in a 105,000 trucks of retail. I think that now what is happening is they are trying to get back into their normal operating models. The trucks we are building today are the most fuel efficient trucks we have ever built, so they are very helpful to customers to operate them. The driver environment's the best it is ever been. The engine's performing the best they have ever performed. We have a great product line out there, and I think that since they have the operating capital to use, they would like to be using those trucks. Since they are just starting to do that. It seems like it is going to ramp through the second half. Like I said, probably 145,000 retail in the second half. And then I think we should expect a very healthy market in 2027. Okay. Thank you. Rob Wertheimer: And then just the EPA, does that advantage any of your competitors more through sort of credits? Is that any headwind to market share or price in 2027? I will stop there. Thanks. R. Preston Feight: Well, actually, I think that the maybe the situation is very leveling now and maybe to our advantage a little bit. In that the NCPs are allowing everybody to make sure we get the right products out there validated. So the customers get the experience with the products. They will get the experience with our products and the quality of product we are able to introduce in a more gradual way versus it being step changed But the fine level if you look at the shape of the curve for the fines, for most manufacturers, they may be all manufacturers, as it is currently written. The fine's going to be in that $6,000 to $7,000 range if they choose to offer. Today's products. And so that kind of levels it out. Also, thank you. Operator: Your next question comes from the line of David Raso from Evercore ISI. Please go ahead. David Raso: Hi. Thank you. Your comments about 2027. Can you take us through your thoughts right now when you are speaking to your suppliers about the cadence Q4 into Q1? And then second question on the parts business. Can you help us get a little more comfort with the parts growth exiting 2026? Obviously, the back half of the year has to step up a little bit. Just trying to think that through and not to give 2027 parts guidance, but just how to think about that growth rate exiting 2026 as we think about 2027. Thank you. R. Preston Feight: Thanks, David. I will take the first one, then Kevin can cover the parts one. We can add anything he wants to the first one too. The quarterly cadence of the market is as I kind of was just describing with Rob, is I really see that the market's ramping up. We are certainly full through the third quarter, mostly full for the year, probably like 90% full for the year even as we are ramping up production. At a rate that is as quick as is reasonable to do. So that is kind of limiting the market size a little bit right now. So we will sell out of build slots probably in the next month or two here. And as we are out of build slots, then I think there will be carryover into 2027. And then I think because of the way the EPA implemented this approach, it will allow people to have the product they want next year, which I think they will be in a good operating condition. And so it will help the cadence of the year next year start strong and probably be strong through the year. Kevin D. Baney: And just to add to what Preston said, PACCAR was the first to announce build rate increases earlier in the year, and so a lot of strong communication with the supply base on the rate of increase throughout the year. So feel pretty good about the support we are getting, at the elevated build levels. And then on the parts side, David, parts will grow at a faster rate in the second half based on the strength of the truck market. Capacity has come out, utilization has increased, freight rates have increased. We are seeing, customers buying more parts now. A good indicator is that the larger customers are buying through our fleet services program. We have seen an 8% increase quarter over quarter. And then also Europe is running strong. And so as we see the stronger truck market second half of this year and into next year, we are confident with the parts growth. Thank you. Operator: Your next question comes from the line of Chad Dillard from Bernstein. Please go ahead. Chad Dillard: Hi, good afternoon, guys. This is Chad. I have a question for you on EPA 2027. So noncompliance is about $6,000 to $7,000. to comply with 35 milligrams, you know, plus $10,000. So assuming the EPA rules hold, how does that change your product strategy? So will you stick with the 200-milligram product and just pass that extra cost on to the customers? Or are you thinking with going as planned with the 35-milligram product? R. Preston Feight: Great question. We are planning on selling the current product to our customers. That is the engagement we have had with many, many customers is that is their preferred approach is to ease into this thing. So both for our excellent PACCAR engines and our partner's engines Cummins. And the plan is to begin 2027 selling those engines. Then getting our customers experience with the 35-milligram engines as the year progresses. But as you noted, if the numbers stay where they are and it is $6,000 to $7,000, there is still an advantage for them in taking the current product. So that is kind of how we think the year shapes up. Which is, I think, favorable for the industry. I think it is a great approach for the industry. Chad Dillard: Okay. Great. And second question, coming back to tariffs and just to be clear, the EPA refund, was there anything in 2Q or through the rest of the year? And then secondly, assuming things as we are trying to think through the rules stay where they are today, how do we think about the year-on-year bridge to 2027 for tariffs? R. Preston Feight: I think that the tariff situation has become a little bit more clear, Chad, and that what is in place is durable. There does not seem to be any real challenge to that. I think it is favorable for PACCAR. In that our teams, as we shared previously, but I was and I have been in all our factories just in the last month, and I just cannot tell you how cool it is to see those great people building every model of truck in the factories in Ohio and in Texas. In a way that is supportive to the approach of the administration of building local-for-local. So great job on that. That gives us a stable tariff operating environment. So looking at that, and, yeah, there is a little bit of benefit in Q2, but that will carry forward in Q3. And the bigger effect of tariffs really ends up being Section 232. As you look forward into next year. Great. Thank you. Great. Okay. Operator: Your next question comes from the line of Kyle Menges from Citi. Please go ahead. Kyle Menges: Great. Thank you. I was hoping just if we could hone in on margins a little bit, maybe as we get into 2027. I mean, you sound a little bit more confident in volumes. And then easing into the new truck platform, I guess, in 2027, the new engine platform. And I am just curious how you are thinking about margin ramifications maybe as you start with selling the 2026 engines in the first half of next year, but then start to produce on the new engines and just how to think about margin impact. As you do that. R. Preston Feight: Yeah. I think that the NCPs that will be out there are fees that will be paid not to the they will be paid to the government. So that is a straight pass through for us, and that is how we would look at that. So it really should not have any effect on margin. We are not going to try to make a profit on those penalties. that is just a pass through. We think the strength of the market will be good for PACCAR in 2027. Should do great. And we think that the, again, the allowance to sell the current model of your products throughout next year. is a-- which is a distinct possibility what we will do with an introduction of 2027. Feels really good. I feel like it is the right approach, and should be positive. Kyle. Kyle Menges: Got it. And then and also on parts, I mean, it sounds like maybe some of the larger fleet customers contributing more to the parts demand this year. So just curious, as you see the over the road market come back and maybe a recovery become more broad based, and you see more demand pick up from small and midsized fleets? Just how to think about parts margins maybe as that mix within the customer base shifts a little bit? I mean, I would imagine maybe small, midsize fleets, they would be buying more TRP parts, which I think come at a lower margin. So just how to think about that. Kevin D. Baney: Yeah, Kyle. So the reference to the fleet services was a good indicator for the large fleets, but we are also seeing the increase in the small to midsize as well, and it is just a reflection of the utilization picking up across the industry. So that is good. We are also seeing an increase in our TRP parts sales as well. So I think those are all strong indicators of improved parts sales. And then just on the margin side, we still have the newest truck platforms in the industry. With strong proprietary content, the engine business as well. And so I think talked earlier calls about the focus on service only required maintenance, and service side as well. And as the truck side improves, I think we will just see all indications improve on the parts side. Helpful. Thank you. Operator: Great. Your next question comes from the line of Jamie Lyn Cook from Truist Securities. Please go ahead. Jamie Cook: Hi, good morning, thanks for your time, and congrats on a nice quarter. I guess my first question, the deliveries surprised to the upside relative to your guide, but U.S. and Canada was down, which I guess I was surprised by. I think you implied every region, so it should be up. So what is driving that? And within the 42,000 deliveries in the third quarter, what are you expecting for U.S. and Canada? And I guess, Preston, it sort of dovetails into the margins because the margins were very impressive with U.S. and Canada down. I always thought that was one of your more profitable regions, so correct me if I am wrong. And then I guess my second question on the third quarter margins, you mentioned mix, like a little more fleet, a little less vocational. Could you just help us understand, you know, what you are seeing across TL, LTL, and vocational in terms of, like, the order book. And is fleet being higher just a function of demand improving there? Is there something know, more negative happening on the vocational side? Thanks. I know there is a lot in there. R. Preston Feight: Wow, Jamie. That was that was a lot. Let me let me try to work from the back of it to the front. You are right. There is some mix shift, and it is it is not about really anything other than the fleets and the truckload carriers increasing their demand in the months we are in now and looking forward that is probably the biggest thing that is affecting the margin there. And then from a build mix, standpoint, if I just take it more generically, I would say that we did have a few hundred trucks that we did not even deliver in the there is probably a difference in the U.S. that we saw just from some supplier constraints that we are starting to experience as the market ramps up. And so we think those will come through in the quarter, and we do expect healthy demand improvement or not even demand, but delivery improvement in the U.S. markets. Then we had good European performance. Team did a great job there in the quarter. And so I think you put the strong U.S. performance, the increasing truck market in the U.S., the strong European performance. They were all factors in it. All came together well. And we think that will continue. Thank you. Yeah. You bet. If I missed something there, feel free to jump in on that because there was a lot. You did a great job. I am good. Thanks. Alright. Take care, Jamie. Operator: Your next question comes from the line of Steven Fisher from UBS. Please go ahead. Steven Fisher: Thanks. Good morning. Just on the U.S./Canada retail outlook, sounds like you are centering around 250,000 there. Just curious with half the year to go, just why not narrow the range at all? Are there still scenarios where you think you could reasonably say either 230,000 or the 270,000 end? R. Preston Feight: You know, I think that we left it that way, but it is really calling a midpoint at 250,000. I think the question still centers out around inventory and what happens with inventory in. I think we have a great understanding of what build is going to be and now it is just what happens with inventory. Okay. Steven Fisher: Makes sense. And then I am not sure if I missed it on the parts side relative to that new 3% to 5% range for the year. Q3, are we thinking that it will sort of be at the low end of that 3% to 5% or somewhere between? Anything specific by the way, if I missed it on Q3 guide? For parts? Kevin D. Baney: Yeah. We did not provide Q3 guide, but what I will add is that we did see we did see sequential growth in Q2 as we went through the quarter. And so that is why I just called it the 3% to 5% for the second half, and we will we will see growth continue throughout the back half of the year. R. Preston Feight: But I do not think we think it is at the low side of that range. I think we think it is at high side of that range. Okay. Terrific. Thank you. Operator: Your next question comes from the line of Angel Castillo from Morgan Stanley. Please go ahead. Angel Castillo: Hi. Good afternoon. Thanks for taking my question. Preston, I just wanted to go back to the discussion around the EPA 2027. I think the 2027 dynamic for unit sales makes sense. But some of the NCPs, specifically to the ability to use credits to sell or to offset Just curious, why would not that, I guess, create the ability for some competitors to ultimately sell the current engine at no incremental penalty? And then maybe to the extent that there is any implications of that, I guess, what are the impacts on potential for passing through price next year on the new engine or just competitive dynamics on price? R. Preston Feight: Yeah, Angel. I do not tend to want to talk about what other competitors are going to do from their strategies. I can just kind of see what the public qualifications are out there, and I know where people to engines are qualified. And so what we see is if the engines are qualified at today's level, then the penalties are going in that $6,000 to $7,000 range for kind of everybody. Operator: And, of course, people can-- Please hold. We are experiencing technical difficulties. Please stand by while we address the issue. Test, can you hear? Jade, can you hear us? David, can you hear us? We can hear you all. Yes. Thank you all for standing by. We will now resume the broadcast. R. Preston Feight: So, Angel, if you are still there, I hope you could hear the answer. If not, let me know, we will come through it. Jade, why do not we go to the next question? And Angel can get back in queue if he wants to do that again. Angel Castillo: Can you hear me? Yep. We got you. Hey, Ken. Yeah. Go ahead. Oh, perfect. Alright. Thank you. Yeah. I guess just maybe switching gears a little bit. Wanted to ask a separate one, a little bit bigger picture and more technology. I guess, I noticed one of your partners had launched, you know, a second generation hardware and driverless freight routes with a different OEM partner. So just wanted to get an update on how some of your partnerships with Aurora are progressing, how you see that evolving over time? Just any kind of plans here to start kind of approving driverless operations or just what your strategic kind of approach here is going to be on some of those autonomous innovations. R. Preston Feight: Yeah. PACCAR is developing its autonomous vehicle platform. We are really happy with the progress we are making in that. We have good partners in Aurora, Stack AV, Kodiak, and the others that we work with. So we feel good about the progress we are making on that. It is significant. We have no plans to take the driver out. At this point in time. Understood. Thank you. Operator: Your next question comes from the line of Scott Group from Wolfe Research. Please go ahead. Scott Group: Hey. Thanks. Afternoon. So all we keep hearing from truckers is a supply-driven cycle. Rates are going up a lot, but demand sort of stable, fewer drivers. Is that change the way you think about what an upcycle could look like in terms of where orders and builds can go? So are you hearing about fleet growth? Or do you think that is less likely now? And sort of supply-driven tightening? R. Preston Feight: Yeah. Great question. I think that if you just look at it in general, while freight tonnage index is increasing only modestly, it is at a high level. So it is not as if there is not a lot of freight being hauled out there. And I think with the GDP growth that the U.S. is experiencing, that is positive because as we all know, over 70% of the freight is moved by trucks. So as the economy grows, the truck grows. And I think that the reshoring and local-for-local efforts that are happening in the industrial base right now are good for trucks and especially good for PACCAR. So I think all of those things give us confidence in where the market should head in the coming year or two here. Okay. Scott Group: And then just lastly, I have got one very short-term and then one longer-term. Mechanically, if someone placed an order that near-term was a prebuy for delivery in 2026. Like, are they able to now push that to 2027? Are you seeing that? And then maybe just my longer-term, like, thought, like, as we enter an up cycle, like, where do you think ultimately gross margins can get to relative to where they have been in prior cycles? R. Preston Feight: I think what we think is that the there was many people thought that there would be a huge prebuy at the end of the year, and I think that what we kind of expect now is with the smart positioning that the EPA did, it will be just a continued improved cycle through the balance of the year. With a stronger 2027 and not much drop-off That feels pretty positive to me. And as far as the margins longer-term, I think, you know, we have done a good job of investing in the right products. So that our team has produced the best trucks that can be built. And I think we are building in the right locations. So that is also positive for margin. And we feel good about the company's short, mid, and long term performance. Thank you. You bet. Operator: At this time, there are no further questions in the queue. Are there any additional remarks from the company? Ken Hastings: We would like to thank everyone for joining the call, and thank you, operator. Operator: Thank you as well. Ladies and gentlemen, this concludes PACCAR's earnings call. Thank you for participating. You may now disconnect. Before you buy stock in Paccar, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Paccar wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Paccar. The Motley Fool has a disclosure policy. PACCAR (PCAR) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Paccar (PCAR) came out with quarterly earnings of $1.43 per share, beating the Zacks Consensus Estimate of $1.33 per share. This compares to earnings of $1.37 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +7.52%. A quarter ago, it was expected that this truck maker would post earnings of $1.13 per share when it actually produced earnings of $1.15, delivering a surprise of +1.77%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Paccar, which belongs to the Zacks Automotive - Domestic industry, posted revenues of $7 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 1.49%. This compares to year-ago revenues of $6.96 billion. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Paccar shares have added about 21.9% since the beginning of the year versus the S&P 500's gain of 8.3%. While Paccar has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Paccar was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.52 on $7.14 billion in revenues for the coming quarter and $5.66 on $27.98 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Automotive - Domestic is currently in the top 33% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Aebi Schmidt Holding AG (AEBI), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 13. This company is expected to post quarterly earnings of $0.13 per share in its upcoming report, which represents a year-over-year change of +316.7%. The consensus EPS estimate for the quarter has been revised 15.8% higher over the last 30 days to the current level. Aebi Schmidt Holding AG's revenues are expected to be $468.4 million, up 68.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report PACCAR Inc. (PCAR) : Free Stock Analysis Report Aebi Schmidt Holding AG (AEBI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in PACCAR Inc.? Here are five stocks we like better. PACCAR reported strong second-quarter results, with revenue of $7.5 billion and net income of $752 million, up 24% from the prior quarter. Truck deliveries increased to 38,700 units, and third-quarter deliveries are expected to reach about 42,000. PACCAR Parts achieved record revenue of $1.75 billion and pretax income of $417 million, while Financial Services earned $124 million. Management expects full-year parts sales growth of 3% to 5% as truck utilization and service activity improve. Truck-market conditions and margins are strengthening, supported by higher freight rates, production growth, cost controls and favorable pricing. PACCAR also said a proposed EPA emissions transition could smooth the 2027 pre-buy cycle without affecting company margins. The USMCA Review Is Coming: 3 Border-Sensitive Stocks to Watch PACCAR (NASDAQ:PCAR) reported second-quarter revenue of $7.5 billion and net income of $752 million, up 24% from the first quarter, as higher truck production and favorable operating conditions supported its truck division. Chief Executive Officer Preston Feight said the company increased factory build rates globally during the quarter. Truck deliveries rose to 38,700 units from 33,000 in the prior quarter, and PACCAR expects third-quarter deliveries of about 42,000 units, with higher production partly offset by the typical European summer shutdown period. → Volatility Is Back and These 3 Market Tollbooths Are Best Positioned to Profit 3 Big-Name Stocks Just Announced Big-Time Dividend Increases “These results were driven by strong truck division performance,” Feight said, while PACCAR Parts reached record quarterly revenue and PACCAR Financial Services benefited from steady finance margins and improving used-truck markets. PACCAR Parts reported record second-quarter revenue of $1.75 billion and pretax income of $417 million. Its gross margin rose to 29.8%, according to President Kevin Baney. → This Tiny AI Supplier Could Be More Important Than the Chipmakers This Autonomous Vehicle Stock Doubled in June and May Do It Again Baney said increased truck utilization is beginning to generate more parts and service activity. Revenue from the company’s Fleet Services program increased 8% in the quarter, which he described as an indication that customers are increasing parts purchases. PACCAR expects full-year parts sales growth of 3% to 5%, with growth accelerating in the second half and trending toward the higher end of that range. PACCAR Financial Services generated pretax income of $124 million. Baney attributed the performance to stable finance margins and strengthening conditions in used-truck markets. → 2 Stocks Built to Thrive If Inflation Refuses to Fade Management said the U.S. and Canadian heavy-truck market is strengthening as freight rates increase and the regulatory environment becomes clearer. PACCAR estimated first-half retail sales in the market at 105,000 trucks and projected approximately 145,000 retail sales in the second half, implying a full-year market of roughly 250,000 units. Feight said spot freight rates were up about 20% and contract rates had increased 6.5%, helping improve customer operating conditions. He also said customers have deferred capital spending and kept trucks in service longer amid difficult operating conditions in recent years, but are now beginning to return to more normal replacement cycles. For Europe, PACCAR forecast a 2026 market for trucks above 16 tons of about 310,000 vehicles. The company expects the South American market for trucks above 16 tons to range from 100,000 to 110,000 vehicles this year. PACCAR’s truck, parts and other gross margin increased to 14.4% in the second quarter from 13.1% in the prior quarter. The company forecast a third-quarter margin of about 14.5%, followed by a further increase in the fourth quarter. Feight attributed the stronger second-quarter margin to higher truck volume, local-for-local manufacturing, cost controls and favorable pricing relative to costs. He said local production also provided tariff benefits. Management said there was a modest benefit related to International Emergency Economic Powers Act tariffs in the second quarter that should continue into the third quarter, while the broader tariff effect looking ahead is tied to Section 232 tariffs. Third-quarter margin progression is expected to be moderated by a larger truck mix relative to parts, as well as a shift toward more fleet trucks and fewer vocational trucks, Feight said. Management nevertheless expects profit to increase as production rises. Management also discussed the Environmental Protection Agency’s July proposal clarifying the timeline for 35-milligram nitrogen oxide engines. Under the proposal, customers could purchase current-generation engines next year while paying a non-conformance fee, allowing manufacturers and customers more time to validate the new technology. Feight said the proposed non-conformance fee would be in the range of $6,000 to $7,000 per truck, while the cost of a fully compliant 35-milligram engine would likely be higher. PACCAR plans to offer its current engine product to customers while gradually introducing the new engines during the year, subject to the rule’s final form. The company said the fee would be passed through to the government rather than retained by PACCAR, and therefore should not affect margins. Feight said the regulatory approach could smooth the anticipated pre-buy dynamic and support a healthy truck market in 2027. PACCAR expects capital investments of $700 million to $750 million in 2026 and research and development spending of $450 million to $480 million. The investments include flexible manufacturing, clean diesel engine development, hybrid and electric powertrains, and connected vehicle services. PACCAR Inc is a global technology leader in the design, manufacture and customer support of light-, medium- and heavy-duty commercial vehicles. The company's products are marketed under well-known brand names including Kenworth, Peterbilt and DAF and span vocational and long-haul applications. PACCAR's core business includes vehicle engineering and assembly as well as the supply of components and proprietary powertrain systems designed to meet regulatory and customer performance requirements. In addition to truck manufacturing, PACCAR operates a comprehensive aftermarket parts business, distributes used trucks and provides commercial vehicle financing and leasing through its financial services operations. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "PACCAR Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Paccar (PCAR) reported $7 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 0.5%. EPS of $1.43 for the same period compares to $1.37 a year ago. The reported revenue represents a surprise of -1.49% over the Zacks Consensus Estimate of $7.1 billion. With the consensus EPS estimate being $1.33, the EPS surprise was +7.52%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Paccar performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Truck deliveries - Total: 38,700 versus 37,871 estimated by three analysts on average. Truck deliveries - Other: 5,500 versus 5,256 estimated by three analysts on average. Truck deliveries - Europe: 11,200 versus 10,951 estimated by three analysts on average. Truck deliveries - U.S and Canada: 22,000 versus 21,664 estimated by three analysts on average. Sales and Revenues- Financial Services: $549.7 million versus $539.88 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +0.4% change. Sales and Revenues- Parts: $1.75 billion compared to the $1.78 billion average estimate based on three analysts. The reported number represents a change of +1.5% year over year. Sales and Revenues- Truck: $5.25 billion compared to the $5.15 billion average estimate based on two analysts. The reported number represents a change of +0.2% year over year. Pretax Profit- Financial Services: $124.1 million versus the four-analyst average estimate of $115.96 million. Pretax Profit- Parts: $417 million versus $441.87 million estimated by three analysts on average. Pretax Profit- Truck: $360.5 million versus the two-analyst average estimate of $220.92 million. View all Key Company Metrics for Paccar here>>> Shares of Paccar have returned +11.6% over the past month versus the Zacks S&P 500 composite's +1.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report PACCAR Inc. (PCAR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

PACCAR Inc. PCAR reported second-quarter 2026 earnings of $1.43 per share, beating the Zacks Consensus Estimate of $1.33 by 7.5%. The bottom line increased 4.4% from $1.37 in the year-ago quarter.Consolidated revenues (including trucks and financial services) were $7.55 billion, up from $7.1 billion in the corresponding quarter of 2025. Truck, Parts and Other revenues of $7 rose 0.5% year over year. Higher truck profitability and record parts revenues supported results, while global truck deliveries declined 1.5% to 38,700 units. PACCAR Inc. price-consensus-eps-surprise-chart | PACCAR Inc. Quote Truck revenues were $5.25 billion in the quarter, edging up from $5.24 billion a year earlier. Parts revenues increased 1.5% to a record $1.75 billion, reflecting continued strength in the aftermarket business.Financial Services revenues were $549.7 million compared with $547.7 million in the prior-year quarter. Intersegment eliminations and other were $3 million.Geographically, revenues from the United States and Canada declined 3.3% to $4.59 billion. European revenues advanced 6.9% to $1.79 billion, while revenues from other markets climbed 7.3% to $1.17 billion. Truck pretax profit rose 16.7% year over year to $360.5 million from $308.8 million. The increase came even as worldwide deliveries slipped from 39,300 units in the prior-year period.North American deliveries fell to 22,000 units from 23,000. Europe improved to 11,200 units from 10,600, while other markets declined to 5,500 units from 5,700.The higher second-quarter build rates were attributable to strong orders and improving freight rates. PACCAR expects constrained freight capacity and an aging fleet to create opportunities for customers to replace trucks with newer, more fuel-efficient models. PACCAR Parts generated pretax income of $417 million compared with $416.5 million a year ago. The modest profit increase came alongside record quarterly revenues and continued investment in distribution and logistics capabilities.The company expects improving North American freight conditions to support truck utilization and parts demand. Its parts network includes 21 distribution centers serving more than 2,000 DAF, Kenworth and Peterbilt locations and over 350 TRP stores.First-half parts revenues increased to $3.46 billion from $3.41 billion. Pretax profit for the six-month period declined to $819.3 million from $843 million. Financial Services pretax income was $124.1 million compared with $123.2 million in the year-ago quarter. Provision for losses on receivables increased to $39.4 million from $29.2 million, partly offsetting steady finance margins and an improving used-truck market.The business ended the quarter with a portfolio of 222,000 trucks and trailers and $22.3 billion in total assets. PacLease’s fleet stood at 37,000 vehicles, and the segment issued $1.38 billion of medium-term notes during the first half.First-half Financial Services pretax income declined to $239.6 million from $244.3 million. Revenues increased to $1.09 billion from $1.08 billion over the same period. Within Truck, Parts and Other, cost of sales and revenues declined to $5.99 billion from $6 billion. Research and development expenses rose to $114.3 million from $112.9 million, while selling, general and administrative expense eased to $138.6 million from $139.2 million.PACCAR generated $700.8 million in operating cash flow during the quarter. For the first half, operating cash flow was $1.67 billion, while capital investments and research and development expenses totaled $274.2 million and $223.4 million, respectively.Cash and marketable securities were $8.67 billion as of June 30, 2026, compared with $9.25 billion at Dec. 31, 2025. The company maintained its 2026 U.S. and Canada Class 8 industry retail sales forecast at 230,000-270,000 trucks. It expects European above 16-tonne registrations of 290,000-330,000 units, up from the previous estimate of 280,000-320,000.The South American above 16-tonne market remains projected at 100,000-110,000 trucks. For 2026, capital expenditures are now expected between $700 million and $750 million, down from the previous estimate of $725-$775 million. Research and development expenses are now projected to be in the band of $450-$480 million compared with the previous estimate of $450-$500 million.Spending priorities include clean diesel, hybrid and battery-electric powertrains, connected vehicle services and expanded manufacturing capabilities.PCAR currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. General Motors Company GM reported second-quarter 2026 adjusted earnings of $3.57 per share, up 41.3% year over year. The figure beat the Zacks Consensus Estimate of $3.13 by 14.06%. Revenues increased 1.9% to $48.03 billion and surpassed the consensus estimate of $46.56 billion by 3.15%. Strong pricing, lower costs and disciplined incentives supported results. General Motors raised its full-year adjusted EBIT guidance to $14-$16 billion from $13.5-$15.5 billion. Adjusted earnings are now projected at $12-$14 per share, up from the prior range of $11.50-$13.50.Tesla, Inc. TSLA reported second-quarter 2026 adjusted earnings of 33 cents per share, which declined 17.5% year over year. The figure missed the Zacks Consensus Estimate of 50 cents by 34%. Revenues advanced 25.5% to $28.24 billion and surpassed the consensus estimate of $25.81 billion by 9.41%. Tesla expects 2026 capital expenditures to exceed $25 billion and rise further over the next two to three years. Genuine Parts GPC reported second-quarter 2026 adjusted earnings of $2.15 per share, beating the Zacks Consensus Estimate of $2.10 by 2.38%. The bottom line increased 2.4% from $2.10 in the year-ago quarter. Revenues rose 6% year over year to $6.54 billion and surpassed the consensus estimate of $6.39 billion by 2.36%. Genuine Parts reaffirmed its 2026 adjusted earnings guidance of $7.50-$8 per share and total sales growth outlook of 3-5.5%. Genuine Parts ended June with $2.3 billion of liquidity, including $559 million in cash. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report PACCAR Inc. (PCAR) : Free Stock Analysis Report Genuine Parts Company (GPC) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Revenue: $7.5 billion for the second quarter. Net Income: $752 million, a 24% increase from the first quarter. Truck Division Performance: Strong performance driving results. PACCAR Parts Revenue: Record quarterly revenues of $1.75 billion. PACCAR Parts Pretax Income: $417 million. PACCAR Financial Pretax Income: $124 million. Truck Deliveries: Increased from 33,000 to 38,700 in the second quarter. Gross Margins: Increased from 13.1% to 14.4% in the second quarter. PACCAR Parts Gross Margins: Increased to 29.8%. Fleet Services Program Revenue Growth: 8% increase in the second quarter. Capital Investments: Planned in the range of $700 million to $750 million for the year. R&D Expenditures: Estimated in the range of $450 million to $480 million for the year. Warning! GuruFocus has detected 9 Warning Signs with UDR. Is PCAR fairly valued? Test your thesis with our free DCF calculator. Release Date: July 28, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. PACCAR Inc (NASDAQ:PCAR) reported strong second-quarter revenues of $7.5 billion, with net income increasing by 24% from the first quarter. The company achieved record quarterly revenues of $1.75 billion in its PACCAR Parts division, with a pretax income of $417 million. PACCAR Financial Services also performed well, achieving a pretax income of $124 million. Truck deliveries increased significantly from 33,000 to 38,700, with expectations of further growth in the third quarter. PACCAR Inc (NASDAQ:PCAR) is investing heavily in technology and innovation, including advanced manufacturing and next-generation clean diesel engines, positioning the company well for future growth. The company faces potential challenges with the introduction of new NOx-related emissions regulations, which could impact customer purchasing behavior. There are concerns about the impact of tariffs, although PACCAR Inc (NASDAQ:PCAR) has managed to mitigate some of these through local-for-local production. The third-quarter gross margin is expected to remain flat despite higher deliveries, due to a shift in truck mix and seasonal factors. There are some supplier constraints affecting US truck deliveries, which could impact future performance. The EPA's proposed rule changes could create competitive dynamics that may affect pricing strategies and market share. Q: Can you explain the stronger-than-expected gross margin this quarter? A: Preston Feight, CEO, explained that the higher volume of trucks and the benefits from local-for-local production contributed to the stronger gross margin. Additionally, effective cost control and favorable price versus cost dynamics played a significant role. Q: What impact does the EPA's new ruling have on your pricing strategy for the fourth quarter? A: Preston Feight, CEO, noted that the EPA's decision to extend the timeline for introducing 35-milligram NOx engines allows for a smoother transition, which is expected to positively impact the truck market in 2027. This regulatory clarity helps maintain stable pricing strategies. Q: Why is the gross margin guidance for the third quarter expected to be flat despite higher deliveries? A: Preston Feight, CEO, mentioned that the mix of trucks being built is shifting slightly towards more fleet trucks, which affects the margin. Additionally, the ratio of truck to parts sales impacts the overall margin, but higher build rates are expected to increase profits. Q: How does the EPA's proposed rule affect your product strategy regarding NOx-compliant engines? A: Preston Feight, CEO, stated that PACCAR plans to continue selling the current generation of engines, as the proposed nonconformance penalties (NCPs) are lower than the cost of fully compliant engines. This approach allows customers to transition gradually. Q: How do you view the impact of autonomous vehicle partnerships on PACCAR's strategy? A: Preston Feight, CEO, highlighted that PACCAR is developing its autonomous vehicle platform with partners like Aurora. The company is making significant progress but currently has no plans to remove drivers from trucks. Q: What are your expectations for the US and Canadian truck market size for the full year? A: Preston Feight, CEO, indicated that the market is expected to be around 250,000 units for the full year, with a strong second half driven by improved operating conditions for customers and increased demand. Q: How do you anticipate the parts business growth in the second half of the year? A: Kevin Baney, President, expects parts sales to grow at a faster rate in the second half due to increased truck utilization and higher freight rates. The growth is supported by increased purchases from larger fleet customers and strong European market performance. Q: How do you see the supply-driven cycle affecting future truck orders and builds? A: Preston Feight, CEO, believes that the current high level of freight tonnage and GDP growth will support a healthy truck market. The reshoring and local-for-local efforts are also expected to benefit PACCAR and the truck industry overall. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Trucking company PACCAR (NASDAQ:PCAR) met Wall Street’s revenue expectations in Q2 CY2026, but sales were flat year on year at $7.55 billion. Its GAAP profit of $1.43 per share was 5.4% above analysts’ consensus estimates. Is now the time to buy PACCAR? Find out in our full research report. Revenue: $7.55 billion vs analyst estimates of $7.56 billion (flat year on year, in line) EPS (GAAP): $1.43 vs analyst estimates of $1.36 (5.4% beat) Operating Margin: 17.3%, up from 9.5% in the same quarter last year Free Cash Flow Margin: 8.7%, up from 6.5% in the same quarter last year Market Capitalization: $70.23 billion Founded more than a century ago, PACCAR (NASDAQ:PCAR) designs and manufactures commercial trucks of various weights and sizes for the commercial trucking industry. Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Unfortunately, PACCAR’s 4.6% annualized revenue growth over the last five years was tepid. This fell short of our benchmark for the industrials sector and is a rough starting point for our analysis. Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. PACCAR’s performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 11.2% annually. This quarter, PACCAR’s $7.55 billion of revenue was flat year on year and in line with Wall Street’s estimates. Looking ahead, sell-side analysts expect revenue to grow 14.5% over the next 12 months, an improvement versus the last two years. This projection is eye-popping for a company of its scale and indicates its newer products and services will spur better top-line performance. WHILE YOU’RE HERE: The Next Palantir? One satellite company captures images of every point on Earth. Every single day. The Pentagon wants it. Hedge funds are using it to beat earnings. You’ve probably never heard of it. This is what the early days of Palantir looked like before it became a giant. Same playbook. Different technology. If you missed Palantir, you need to see this. Claim The Stock Ticker for Free HERE. Operating margin is one of the best measures of profitability because it tells us how much money a company takes home after procuring and manufacturing its products, marketing and selling those products, and most importantly, keeping them relevant through research and development. PACCAR has been an efficient company over the last five years. It was one of the more profitable businesses in the industrials sector, boasting an average operating margin of 11.9%. This result was particularly impressive because of its low gross margin, which is mostly a factor of what it sells and takes huge shifts to move meaningfully. Companies have more control over their operating margins, and it’s a show of well-managed operations if they’re high when gross margins are low. Looking at the trend in its profitability, PACCAR’s operating margin rose by 1.7 percentage points over the last five years, as its sales growth gave it operating leverage. In Q2, PACCAR generated an operating margin profit margin of 17.3%, up 7.8 percentage points year on year. The increase was solid, and because its operating margin rose more than its gross margin, we can infer it was more efficient with expenses such as marketing, R&D, and administrative overhead. We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable. PACCAR’s EPS grew at 7.2% compounded annual growth rate over the last five years. On the bright side, this performance was better than its 4.6% annualized revenue growth and tells us the company became more profitable on a per-share basis as it expanded. We can take a deeper look into PACCAR’s earnings to better understand the drivers of its performance. As we mentioned earlier, PACCAR’s operating margin expanded by 1.7 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its higher earnings; interest expenses and taxes can also affect EPS but don’t tell us as much about a company’s fundamentals. Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business. For PACCAR, its two-year annual EPS declines of 29% show it’s continued to underperform. These results were bad no matter how you slice the data. In Q2, PACCAR reported EPS of $1.43, up from $1.37 in the same quarter last year. This print beat analysts’ estimates by 5.4%. Over the next 12 months, Wall Street expects PACCAR’s full-year EPS to grow 31.2% from $4.76 to $6.24. It was good to see PACCAR beat analysts’ EPS expectations this quarter. Zooming out, we think this was a decent quarter. The stock remained flat at $133.09 immediately following the results. Is PACCAR an attractive investment opportunity right now? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it’s free.